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How this ‘reckless spender’ turned things around

Cassie Howard&rsquo;s debt woes taught her a lesson. So her Christmas shopping is pretty much done and she&rsquo;s already eyeing next year.

Cassie Howard, an extreme couponer wraps Christmas gifts that she has shopped for throughout the year. (Galit Rodan / For the Toronto Star)

By Carola Vyhnak

Tues., Nov. 20, 2012

Cassie Howard has her Christmas shopping pretty much all wrapped up. The frugal living expert even has a stash of gifts on standby for unexpected special occasions.

How does she do it? By shopping the sales year ’round starting on Boxing Day, setting budgets and being highly organized.

“I carry a list on my phone of gift ideas for everyone and I have spreadsheets where I write down every purchase,” says the busy mother of two young children who operates the website Mrs.January.com. “And I don’t pay full price ever.”

The new year is typically a busy time for the national association of non-profit agencies as big spenders’ bills arrive after the holiday shopping extravaganza, she says.

“The people we see have considerable debt and several issues creating financial problems. They don’t focus on what they’re spending and how much,” White explains.

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Buying gifts is all about traditions and expectations, which can lead to what White calls “emotional gift-giving” with people spending more than they want to or can afford.

She encourages shoppers to gain control at the cash register by understanding what’s motivating them to swipe that card. “Don’t spend to impress,” she advises.

Howard, 26, learned about “reckless spending” the hard way. “Always a spender not a saver,” the Vaughan resident got deeply in debt several years ago. She maxed out her credit card, owed $10,000 in taxes and came up empty at rent time. After selling her modeling company to get out of the red, Howard turned her approach to personal finance upside down by exploring ways to cut costs and rein in spending.

Five years ago, she started her website as an online authority on enjoying life “without a pile of debt hanging over your head.”

She’s made a name for herself as an extreme couponer, able to save an average of 50 per cent off her grocery bill. Keenly attuned to the retail sales cycle, she tells followers what are the best things to buy each month.

The key to dodging money woes during gift-buying season is planning ahead, says Howard, who has three separate budgets for Christmas, birthdays and miscellaneous celebrations.

“It’s a lot of organization but it works really well once you get into the routine,” she says of her system of logging every purchase to keep a running tally.

Bargain-hunting is a key part of her shopping strategy, exemplified last Dec. 26 when she scored half a dozen $10 throw blankets for $2 each at Walmart. Howard is also a big fan of loyalty points that she collects at retailers like Shoppers Drug Mart. Last year she redeemed $1,000 worth of Optimum points for a range of gift items that included cosmetics, cameras and televisions.

Howard also gets a lot of mileage out of low-cost homemade gifts, which she says anyone can do without a lot of time or talent at their disposal. Hot chocolate mix, cookie ingredients or snacking treats – all of which are available in bulk food stores – can be prettily packaged for recipients of all ages and tastes.

Unlike her former days of debt, the only red in Howard’s holiday scene is Santa’s suit.

How not to overspend

• Draw up a spending plan with realistic amounts. Don’t forget to factor in tax.

• Stay in charge and stick to the plan.

• Shop with a list and preferably alone so you’re not influenced to spend more.

• Get in and get out of the mall and don’t turn a shopping trip into a leisure activity.

• Pay with cash or debit so you’re not tempted to overspend by using a credit card.

• Be flexible with the type and number of gifts you buy. Give gift cards to stick to your spending limit, and find creative ways to wrap them.

- Credit Counselling Canada

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